What does it mean when indiciduals say '' the stock market crashed ''?

Answer 1

A prime example of the Stock Market crashing occurred in '29. During World War I a number of farmers got loans from the banks to expand their land and increase their crops to help feed the troops overseas. After the war ended there no longer was a need for the crops, and the farmers had no one to buy their products. This meant that they no longer had the money to pay the bank back for the loan and many also lost their land. At the time the banks did not have the backing of what later was called the FDIC, Federal Deposit Insurance Corporation, they too went bankrupt costing anyone who had savings in their establishment to lose their money as well. Without the backing of the banks, any documents, stocks, or other savings plans that people invested in, lost all value, therefore, the stock market tied to the banks crashed.

Answer 2

That the stocks were no longer worth very much.